1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vadim26 [7]
3 years ago
9

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $

6,170,000 and will be sold for $1,370,000 at the end of the project. If the tax rate is 30 percent, what is the aftertax salvage value of the asset?

Business
1 answer:
tia_tia [17]3 years ago
3 0

Answer:

After tax salvage value $1,278,852.8‬

Explanation:

MARCS five years class:

after four years we will have depreicate:

0.2 + 0.32 + 0.192 + 0.1152 = 0,8272‬

(Data from the attached MACRS)

tax basis of the asset:

6,170,000 x ( 1 - 0.8272) = 1.066.176‬

We will be taxed for the difference between the basis and the salvage value:

1,370,000 - 1,066,176 = 303,824‬ taxable gain:

303,824 x 30% = 91,147.2

After tax salvage value:

salvage valeu - income tax expense

1,370,000 - 91,147.2 = 1,278,852.8‬

You might be interested in
Charlie wants to register a name for his company. He wants a name that is specific to the company and makes the company easily i
sweet-ann [11.9K]

Answer:

The name of the company isLaunch Business As

6 0
2 years ago
Read 2 more answers
If consumers buy less of a commodity when their incomes rise, this commodity is .
WINSTONCH [101]
The commodity is an inferior good. 

An inferior good is one for which the quantity demanded decreases when the income of the consumer increases, or one for which the quantity demanded increases when the income of the consumer decreases. In contrast, a normal good is one for which the demand increases when the consumer's income increases.
6 0
3 years ago
Balance sheets usually classify assets into at least two major categories: current assets and
astraxan [27]

Answer:

False

Explanation:

Balance sheets relate to balance and expenditure over a period.

6 0
3 years ago
A market research study of soft drink consumption and distribution in Hungary commissioned by an American company indicated that
Nutka1998 [239]

Answer:

comparability of data

Explanation:

Comparability of information is one attribute used only to characterize the consistency of descriptive statistics. For two factors the principle of comparability of data is especially critical to a Triad.

Secondly, the Constellation demonstrates shared data sets. Through nature, the shared data sets include information from different analytical techniques. The degree of comparability among two separate sequencing / technical methods affects the way in which sets of data can be jointly compiled, analyzed and used to help strategic thinking.

7 0
3 years ago
Bob's best friend Mike turns 25 next week. Bob decided to purchase Mike a tablet device/e-book reader as a present. Because Bob
elixir [45]

Answer:

C. Internal search

Explanation:

The situation in which a consumer or an individual refers to his own memory or recollection for a product, where the individual selects from alternative options from his or her memory is known as Internal search. In this scenario, given his personal experience with personal computers and consumer electronic devices, Bob is able to refer to his own memory for various brand options he feels is the best and want to purchase from.

5 0
3 years ago
Other questions:
  • Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi
    12·1 answer
  • What are some questions you may ask when reevaluating a goal? (Choose all that apply.)
    6·1 answer
  • Q7. Which of the following is a necessary condition – something that must occur—for nominal GDP to rise? Explain your answers.
    14·1 answer
  • Consumer protection is an important issue, but how much responsibility should the government have in protecting consumer? There
    11·1 answer
  • Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have i
    11·1 answer
  • Wasson Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials
    6·1 answer
  • Penny Lane and Associates purchased a generator on January 1, 2015, for $6,300. The generator was estimated to have a five-year
    14·1 answer
  • Assume that the interest rate on borrowings in Argentina is 3 percent, but the interest rate on deposits in British banks is 9 p
    5·1 answer
  • The following data are taken from the financial statements of Bar Harbor Company:
    5·1 answer
  • The share of deposits that banks must have in reserves is the . The interest rate banks charge each other for very short-term lo
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!